Issue 91

Shanghai Weekly Bulletin

No.4, April 2025

Shanghai Weekly Bulletin is an information service presented by the Foreign Affairs Office of Shanghai Municipal People's Government in collaboration with Wolters Kluwer to foreign-funded enterprises, foreign-related institutions as well as people from overseas living in Shanghai. Covering major national and Shanghai foreign-related news, event information, policy Q&A and interpretations in the past week, it keeps you up-to-date with the latest foreign-related policies and developments in Shanghai.

 

Laws and Regulations

【National】

1.China and Malaysia Sign Mutual Visa Exemption Agreement

【Keywords: Malaysia】

On April 16, China and Malaysia signed the Agreement Between the Government of the People’s Republic of China and the Government of Malaysia on Mutual Visa Exemption for Holders of Official and Ordinary Passports. The agreement will come into effect after both governments complete the necessary procedures. The existing mutual visa-free entry policies for citizens of both countries remain unaffected.

Source:Consular Express

 

2.State Administration for Market Regulation Releases 37 Measures to Support the Development of Private Enterprises

【Keywords: Private enterprises】

Recently, the State Administration for Market Regulation issued the List of Key Measures for Implementing the Guiding Principles of the Symposium on Private Enterprises, putting forward 37 key measures. The main highlights include breaking down barriers and promoting fair competition, strengthening regulation and rectifying irregularities, providing targeted support and delivering proactive services, etc.

Source:Market Regulation Commentary

 

【Shanghai】 

1.Shanghai Introduces 26 Measures to Promote High-quality Development of the Private Economy

【Keywords: Private economy】

Recently, the CPC Shanghai Municipal Committee and Municipal Government officially issued the Several Measures for Promoting the High-quality Development of the Private Economy in the New Era and New Journey. The document outlines 26 initiatives across six key areas, i.e., continuously optimizing the development environment for the private economy, accelerating the improvement of investment and financing supporting policies for private enterprises, addressing the issue of overdue payments to private enterprises, protecting the legitimate rights and interests of private enterprises and entrepreneurs in accordance with the law, vigorously supporting the innovative and open development of private enterprises, and strengthening service and support for the development of the private economy.

Source:Shanghai Release

 

2.Shanghai Rolls out Measures to Support the Growth of "Specialized, Sophisticated, Distinctive, and Innovative" Small and Medium-sized Enterprises

【Keywords: Specialized, sophisticated, distinctive, and innovative, Small and medium-sized enterprises】

Recently, the General Office of the Shanghai Municipal People's Government issued the Several Measures for Promoting the Growth and Development of Specialized, Sophisticated, Distinctive, and Innovative Small and Medium-Sized Enterprises in Shanghai. The document presents 20 specific measures across six areas, including promoting high-growth development, supporting refined management, fostering high-standard innovation, and reducing overall factor costs, etc. These measures have taken effect since April 3, 2025.

Source: Shanghai Municipal People's Government

 

3.Shanghai Municipal Administration for Market Regulation Releases First White List for "No Unnecessary Disturbance" Inspection Items 

【Keywords: No unnecessary disturbance, White List】

Recently, the Shanghai Municipal Administration for Market Regulation officially released the List for "No Unnecessary Disturbance" Inspection Items, which includes 411 low-risk items in the first batch of the "White List". These items span various fields such as advertising, pricing, and business registration, accounting for 63.7% of the total inspection items.

Source:Shanghai Municipal Administration for Market Regulation

 

4.Pudong New Area Steps up Efforts to Attract Foreign Investment

【Keywords: Foreign investment】

Recently, the Commerce Commission of the Pudong New Area released the Supporting Measures of Pudong New Area to Step up Efforts to Attract Foreign Investment. The document puts forth 14 supporting measures across four key areas, i.e., improving the quality and efficiency of using foreign capital, continuously optimizing the foreign investment environment, enhancing the rule of law and facilitation for capital investment and operation, and strengthening foreign investment promotion efforts. These measures will take effect on May 15, 2025, and remain valid until December 31, 2027.

Source:International Services Shanghai

 

One Week in Shanghai

【Latest News】 

1."Shanghai Summer" Extends a Warm Invitation to Global Consumers

【Keywords: Shanghai Summer】

On April 18, the 2025 "Shanghai Summer" International Consumption Season Global Promotion Conference officially kicked off. At the Conference, the 2025 "Shanghai Summer" global promotional video Pass Through Shanghai Summer was released for the first time. The official website (www.shanghaisummer.com), supporting five languages — Chinese, English, French, Japanese, and Korean — was also launched, along with a recruitment channel "Global Ambassador". This year's "Shanghai Summer" features the debut of 240-hour themed products, as well as exclusive discounts, limited-edition items, and customized services launched in collaboration with businesses. An innovative section "City Customized Events" has also been introduced. Additionally, the Foreign Affair Office of Shanghai People's Government, in partnership with the People's Bank of China Shanghai Head Office, has launched "Easy Go", a one-stop integrated service application designed to enhance the experience and satisfaction of inbound tourists.

Source:Shanghai Commerce

 

【Forum & Exhibition】 

1.2025 AUTO Shanghai to Dazzle on April 23

【Keywords: AUTO Shanghai】

The 21st Shanghai International Automobile Industry Exhibition will be held from April 23 to May 2, 2025, at the National Exhibition and Convention Center (Shanghai). There will be two media days on April 23 and 24. Nearly 1,000 well-known Chinese and international enterprises from 26 countries and regions are expected to participate. The exhibition will cover more than 360,000 square meters, featuring a broader international presence and setting a new record in scale.

Source: International Services Shanghai

 

2."2025 Space Day of China" Main Event to Be Held in Shanghai

【Keywords: Space Day of China】

A press conference for "Space Day of China" was recently held, announcing that the main event for this year's Space Day of China will take place in Shanghai on April 24. The 2025 theme, promotional poster, key activities, and special events hosted by the city of Shanghai were also unveiled.

Source:Shanghai Aerospace

 

【Culture & Art】 

1.2025 Shanghai Jing'an Theatre Festival Set to Begin

【Keywords: Shanghai Jing'an Theatre Festival】

The 2025 Shanghai Jing'an Theatre Festival will take place from April 25 to June 2. With the tagline "Cosmopolitan Jing'an, Drama in the Air", this year's festival will present 20 domestic and international theatrical masterpieces. Highlights include Chekhov's Uncle Vanya, Bulgakov's The Master and Margarita, Strindberg's Miss Julie, and Jules Verne's Twenty Thousand Leagues Under the Seas, among other classics.

Source:International Services Shanghai

 

2."So Long, So Lush – Huang Yongyu's New Works Exhibition" Opens

【Keywords: Huang Yongyu】

The So Long, So Lush – Huang Yongyu's New Works Exhibition is on display at the World Expo Museum from April 16 to June 8. The exhibition showcases over 200 works created by Huang Yongyu after the age of 90, including colorful ink paintings, prints, and sculptures. It also features a systematic presentation of his manuscripts, publications, and archival materials.

Source:World Expo Museum

 

【Corporate Activities】 

1.BASF Expands Pudong Automotive Shock Absorber Project

【Keywords: BASF】

On April 14, the Commencement Ceremony for Cellasto Plant Expansion of BASF was held at the BASF Pudong Innovation Park. The expansion involves an investment of approximately RMB500 million and aims to boost BASF's presence in China's fast-growing new energy vehicle market by supplying advanced Cellasto components designed for noise, vibration, and harshness management. The expansion is scheduled to complete in 2027.

Source:International Services Shanghai

 

【Training】

1.2025 Foreign Investment Information Annual Reporting Seminar to be Held Soon

【Keywords: Foreign investment】

To help foreign-invested enterprises better understand the annual reporting process, compliance requirements, and facilitation measures, the Shanghai Foreign Investment Association, entrusted by the Shanghai Municipal Commission of Commerce, will host the 2025 Foreign Investment Information Annual Reporting Seminar on April 24. Officials from the Shanghai Municipal Administration for Market Regulation and the Shanghai Branch of the State Administration of Foreign Exchange are invited to provide explanations and answer enterprise questions on-site.

Source:Shanghai Foreign Investment Association

 

Q&A

Q: At a press conference introducing the Measures for Promoting the High-quality Development of the Private Economy in the New Era and the New Journey, a spokesperson from the Shanghai Municipal Development and Reform Commission responded to a journalist's question: What is the current overall situation of private economic development in Shanghai? Going forward, what considerations does the government have for implementing the measures, creating a better environment for private enterprises, and promoting high-quality development of the private economy?

A: In recent years, Shanghai has focused on optimizing the business environment, deepening administrative approval reforms, improving ex ante and ex post regulation, and striving to ensure fair competition. Targeting the needs of enterprise development, the city has introduced a comprehensive package of policy measures in areas such as financial and tax support, digital transformation, talent and sector-specific support. These measures have effectively stimulated the vitality of private enterprises and promoted improvements in the quality and efficiency of the private economy. In 2024, Shanghai's private economy maintained steady and healthy growth. Private economy accounted for nearly 30% of the city's total industrial output and fixed asset investment, over 30% of value added, nearly 40% of tax revenue, and contributed three-quarters of new employment. Moreover, 80% of the "specialized, sophisticated, distinctive, and innovative" enterprises and "little giant" firms are private enterprises, and private business entities make up over 90% of the total. Private economy is a vital force driving urban development in Shanghai and a key engine for economic growth.

Currently, the development of Shanghai's private economy still has room for improvement. Hidden barriers to market access remain in certain sectors, and issues such as financing difficulties for small and medium-sized private enterprises persist. Therefore, we must continue to deepen the implementation of various policy measures, strive to create a development environment where private enterprises are treated equally and can compete fairly, and further stimulate the vitality of the private economy. We will put in efforts in three key areas:

First, fostering a world-class business environment that benefits both private enterprises' and Shanghai's overall growth. Taking the fourth revision of the Regulations of Shanghai Municipality on Optimizing Business Environment this year as an opportunity, we will accurately grasp the practical requirements of market-orientation, rule of law, and internationalization, address the prominent business environment issues raised by market players, and create a stable, transparent, and predictable institutional environment. We will continuously improve the coherence, clarity, and convenience of policy services, making steady progress in optimizing the business environment and helping enterprises thrive in Shanghai. Furthermore, we will enhance pro-business policy services and provide intelligent "policy-to-enterprise" services for all types of market entities, improve government-business communication mechanisms and comprehensively build a transparent and close government-business relationship.

Second, supporting the development of a unified national market to better position private enterprises within the new development paradigm. In line with national requirements, we will work on key areas such as unifying institutional rules, connecting infrastructure, integrating factor markets, and improving regulatory systems, and actively serve and integrate into the development of a unified national market. Moreover, we will strictly enforce the negative list for market access and continuously identify and remove market access barriers. Fair competition review mechanisms will also be rigorously implemented to ensure that all types of market entities can lawfully and equally access production factors and participate fairly in market competition. In addition, we will actively dismantle market barriers and smoothen economic circulation to create a fairer competition environment and broader market space for private enterprises.

Third, providing high-quality "going global" services to support the international expansion of private enterprises. Private enterprises are the main force behind Shanghai enterprises' outbound business expansion. In 2024, non-financial outbound investment filings by private enterprises accounted for over 90% of the city's total outbound investment volume. We will build an Enterprise Going Global Comprehensive Service Platform to provide integrated services for policies and regulations, cross-border financing, data flows, investment protection, risk prevention, and other needs. Support will be provided for private enterprises to implement global development strategies, optimize global industrial chain layouts, and improve the convenience of overseas investment. In this new era and new journey, the future of the private economy is full of promise and potential. We will strive to be a trusted partner of private enterprises, an active promoter of pro-business policies, and a dedicated supporter of high-quality development — contributing to the growth and strength of the private economy.

Source:Shanghai Release

 

Expert Perspective

New Opportunities for Foreign Investment: The First Batch of 13 Foreign-funded Enterprises (Including Wholly Foreign-owned Enterprises) Received Approval for the Pilot Operation of Value-added Telecommunications Services

By Li Rui, Zhong Junpeng, Xie Xueqian (Zhong Lun Law Firm)

[Continued from the Previous Issue]

II. Review of Foreign Investment Access Policies for Value-added Telecommunications Businesses

·Latest progress: Pilot opening in Beijing, Shanghai, Hainan and Shenzhen 

(1)Further easing of foreign investment restrictions in value-added telecommunications businesses

In 2024, the Ministry of Industry and Information Technology (MIIT) issued the Notice on Launching the Pilot Program for Expanding the Opening-up of Value-added Telecommunications Businesses (hereinafter referred to as the "Notice"), announcing that in designated demonstration zones in Beijing, Shanghai, Hainan, and Shenzhen, foreign equity ratio restrictions in certain value-added telecommunications businesses would be lifted. Specifically, the Notice states that in the approved pilot regions, foreign equity ratio limits will be removed for the following categories of businesses: internet data centers (IDC), content delivery networks (CDN), internet service providers (ISP), online data processing and transaction processing, as well as information services related to information publishing platforms and delivery services (excluding internet news, online publishing, online audiovisual services, and internet culture operations), and  information protection and processing services.

This pilot represents a significant opening-up effort. In terms of geographic scope, it covers nearly the entire regions of the major economic center cities and free trade port mentioned above. In terms of permitted categories, it includes multiple telecommunications categories commonly involved in the digital economy. Notably, for key categories such as IDC, CDN, and ISP, it has broken through the CEPA framework's previous restrictions, which limited access to eligible investors from Hong Kong and Macao and imposed specific equity ratio requirements. This move underscores the country's commitment to encouraging foreign investment in the value-added telecommunications sector and promoting the development of the digital economy. The approval of the first batch of 13 enterprises marks a key milestone in the pilot implementation. 

(2) Application procedures, review timeline, and required materials

Foreign-invested telecommunications enterprises intending to engage in the value-added telecommunications services in the pilot regions must apply for pilot operation approval in accordance with the relevant regulations. Taking Hainan as an example, Hainan has released the Online Application Guide for Expanding the Pilot Program to Opening-up Value-added Telecommunications Businesses in the Hainan Free Trade Port. Foreign-funded enterprises registered in the Hainan Free Trade Port may submit applications through the MIIT’s unified online government service platform. The Hainan Communications Administration will complete a preliminary review within 15 days of accepting the application and submit the results to the MIIT for further review. Application materials include application form, company and personnel information sheet, shareholder information sheet, service-specific business forms, etc. 

As for the approval timeline, the pilot program officially launched on October 23, 2024, and the first batch of approvals was announced in February 2025, meaning the process takes roughly 4 to 5 months. Overall, the review period remains relatively streamlined and manageable.

[To be Continued]